Renewable Energy Certificates (RECs) are part of a regulatory system created by state law and are designed to
establish a financial market which recognizes, quantifies and permits the purchase and sale of the environmental
value of producing electricity using renewable sources such as hydro, wind, solar, biomass, or landfill gas. One
REC represents the environmental value of one megawatt-hour (MWh) of renewable generation. In this way, the
owner of a renewable power generator may be rewarded with an additional monetary benefit for each MWh of
renewable energy produced.
While anyone can purchase RECs, most are purchased by electric utilities, which are required by state law to own
predefined quantities of RECs tied to a percentage of their total annual electricity sales. These predefined
quantities are called the Renewable Portfolio Standard (RPS). At its discretion, NHEC is a purchaser of RECs and
acquires RECs from a variety of sources. RECs are governed by a regulatory process with the New Hampshire
Public Utilities Commission (NH PUC). The NH PUC process is governed by statute and rules that can be found
in the following websites:
NH Renewable Portfolio Standard RSA 362-FNH Public Utilities Commission - PUC 2500 RulesThe regulatory process to qualify a renewable generator for production of RECs includes the Renewable Energy
Certificate Member Agreement that must be completed by the member-generator, submitted to NHEC who
forwards to the NH PUC for approval and filing. Additionally, when a renewable resource is net metered, referred
to as a Member-Sited Source, it must also have an approved monitor. NHEC has been approved by the NH PUC
as a monitor. Among other responsibilities, in order to monitor a Member-Sited Source, NHEC will install a
generation (REC) meter to record the amount of electric energy the resource generates , routinely read and
maintain the generation meter, and report to the NH PUC on a regular basis. NHEC may charge a monthly
Monitoring Fee. Please refer to our website for the current fee.
The billing statements you receive from NHEC are based on kilowatt-hours (kWh) of usage. One REC is equal to
one megawatt-hour (MWh) of renewable generation. It takes 1,000 kWh to produce one MWh. Unfortunately,
the regulatory process that governs RECs does not recognize or allow the sale of renewable generation in
increments less than one MWh. Accordingly, “partial” RECs are not counted or traded and do not carry forward.
Therefore, your renewable energy source must generate at least 1,000 kWh within a calendar year before a REC is
produced. Member-generators who are planning to install a renewable energy source that is net metered have four
choices regarding their aggregation of the RECs:
A. NHEC will monitor renewable generation for informational purposes only. In addition to inspecting the
interconnection-facility and installing a net meter on your account, NHEC will install a generation meter
to record the electric energy produced by your renewable interconnected facility. Under this option, you
will not accrue RECs and no application is filed with the NH PUC. Upon request, NHEC will provide you
with an annual report of your self-generation. NHEC will charge a monthly Monitoring Fee (please
reference NHEC’s Schedule of Fees, Charges and Rates). If this is your choice, please initial Option A of
the Renewable Energy Certificate Member Agreement.
2024 Net Metering Interconnection-Facility Application Form
B. Contribute the RECs to NHEC. In addition to inspecting the interconnection facility and installing a net
meter on your account, NHEC will install a generation meter to record the electric energy produced by
your renewable interconnected facility. NHEC will complete an application to be filed with the NH PUC
for their approval of your qualifying RECs. NHEC will report the annual renewable generation
information to the NH PUC in accordance with their rules and regulations. Upon request, NHEC will
provide you with an annual report of your renewable generation. NHEC will not charge a monthly
Monitoring Fee. Under this option, you would be helping NHEC meet its RPS requirement. If this is your
choice, please initial Option B of the Renewable Energy Certificate Member Agreement.
C. Sell the RECs to NHEC. In addition to inspecting the interconnection facility and installing a net meter on
your account, NHEC will install a generation meter to record the electric energy produced by your
renewable interconnected facility. NHEC will complete an application, to be filed with the NH PUC for
their approval of your qualifying RECs. NHEC will report the annual renewable generation information
to the NHPUC in accordance with their rules and regulations. Annually, NHEC will either make a
payment to you by check or credit your account for the RECs generated by your renewable source. NHEC
will charge a monthly Monitoring Fee. If this is your choice, please initial Option C of the Renewable
Energy Certificate Member Agreement.
D. Do Nothing. You may elect to not choose any of the three options listed above and thereby not involve
NHEC in the REC process. In addition to inspecting the renewable interconnection facility and installing
a net meter on your account, NHEC will install a generation meter to record the electric energy produced
by your facility for administrative purposes only. NHEC will not charge a monthly Monitoring Fee. Under
this option, NHEC will not report the annual renewable generation information to the NH PUC. If this is
your choice, please initial Option D of the Renewable Energy Certificate Member Agreement.
Please note this is an ever-changing marketplace. Other options and state rules may apply in the future.
All four options listed in the Agreement will require NHEC to install a renewable generation meter in an approved
meter socket installed by your electrician. The meter socket shall be installed at an approved exterior location
accessible by a NHEC meter technician. Approved meter sockets and meter locations can be found in NHEC
Electric Service Handbook.
Please note that the information in this document relates to your Renewable Energy Interconnection Facility
only and does not change any of the other Rates, Fees and Charges applicable to your account.
If you have any questions regarding the information in this document, please call Scott McNeil at 603-536-
8608.